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Principal Market Maker

IBS Forex provides qualified customers and counterparts seeking to acquire and/or convert various foreign currencies with 24 hour trading coverage of all major and most minor currencies and makes markets in Spot, Forwards, and EFPs (exchange-for-physicals) transactions. Foreign currency transactions will be settled in full by physical delivery through IBS Forex's Foreign Currency "Nostro" Accounts through Bank of America.

IBS Forex acts as a Principal Market Maker in these transactions. A principal market maker assumes market risk to provide its clients with market liquidity by acting as the counterparty for its clients trades. IBS Forex may have offset its risk involved in these transactions directly or may have assumed the market risk of these transactions without taking any steps to hedge or reduce its market exposure. IBS Forex may have Marked-Up or Down the price(s) of these transactions. The amount of any such Mark-Up/Down will vary depending on the transaction’s size, amount of time to maturity and prevailing market conditions.

Transaction Types

"Spot" Foreign Exchange Transactions

This is the most common type of Interbank Foreign Exchange transaction.   In a "Spot" Trade, you buy or sell one currency in exchange for another for "prompt settlement".

"Prompt Settlement" means the exchange of one currency for another in full satisfaction of the terms and conditions of an Interbank Foreign Currency trade within two business days.

For example, The USD/JPY rate is quoted at 111.95 / 98. This quote represents the bid/offer spread for USD vs. Japanese Yen. If you were to buy U.S. Dollars and sell Japanese Yen at an exchange rate of 111.98, Yen-to-the-Dollar, in a Spot Trade you would receive $100,000 USD and be required to deliver 11,198,000 JPY in two business days. Spot transactions require payment in full on settlement day.

Margined Foreign Exchange Transactions

A Margined Forward transaction is identical to a "spot" transaction except that the Delivery Date is extended into the future by mutual agreement. IBS Forex requires a good faith deposit to secure performance on all margined forward transactions and settlement in full on Margin Foreign Exchange Contracts upon final maturity.